Market Outlook for 12 March 2024

Post the extended weekend, Nifty started the week on a flat note but we witnessed profit booking during the day which led to a dip towards 22300. The index ended the day with a loss of about three- fourth of a percent while the Bank Nifty index posted a loss of over a percent.

Nifty Today:

Our markets witnessed profit booking at the start of the week where the small cap index corrected by a couple of percent. The RSI oscillator on the daily chart of Nifty is positive while the hourly chart has a negative crossover, hinting at a possible short term correction within an uptrend. The immediate support for the index is placed around 22250 followed by 22100-22000 range. Any further decline towards the mentioned support zone could see buying interest again. However, the Nifty Small Cap index has breached its 40 DEMA support and has a negative momentum indicator hinting at a possibility of relative underperformance in this space. Hence, traders are advised to be stock specific and trade with proper risk management.

                                     Profit booking in broader markets drags Small Cap index lower

Nifty, Bank Nifty Levels and  FINNIFTY Levels: